Morgan Stanley reduced its sales estimates for Apple's iPhone 7 and predicted the tech giant's March quarter forecast will come in under Wall Street expectations.
"We lower FY17 [fiscal 2017] iPhone estimates slightly to reflect weaker iPhone 7 demand (7 Plus stronger), somewhat offset by better ASPs. We expect March guidance below consensus," analyst Katy Huberty wrote in a note to clients Monday. "We remain confident on our supercycle thesis [for the next iPhone] ... Apple remains a top pick."
Apple will report fiscal 2017 first quarter results on Jan. 31, according to its website.